I have a client that runs a small business and uses a QuickBooks app on their phone. They have a problem regarding the allocation of receipts from a customer. For example:
Customer is not invoiced (to save time and client does not wish to raise an invoice) for training and payment is received and allocated to that customer
Same Customer is then invoiced for for further work but the payment for the above is DEDUCTED from this invoice.
How to they stop the invoice being altered like this
Many Thanks
Replies (11)
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Agree with Scalloway. At the moment you're only recording payments on account, therefore you need to raise an invoice anyway to correctly record the income on the p&l.
Perhaps there could be two accounts. One for the cash receipts and the other for invoiced work.
If you are not raising an invoice just post the amount directly to sales in the p&l, its a pointless excercise to post to the sales ledger if there is no invoice being raised
I think QBO may be auto allocating the funds received, you can stop it by going to the Advanced part of Settings and turn off Automatically apply credits.
AND are you ,correctly, recording VAT on these receipts on account/no invoice, amongst other matters. How is the cash in hand business being reported ?
Surely in QB you just record the un-invoiced payment as a 'Sales Receipt' rather than as a received payment and corresponding invoice?
This is not easy to do in Quickbooks, unlike Sage. I faced the same problem recently. Quickbooks wants to know who the money came from and automatically tries to allocate it to an existing customer. I got over it by setting up a recurring entry for cash income.
they stop it, by raising an invoice, if there is no invoice, then payments would get credited to a client account, and then because you have raised a new invoice, its allocating that credit to the invoice.
Put it to the requisite client, then when the full invoice is raised go to the deposit and click unmatched in small type on top left or use match credit routine. N